After last week's stronger-than-expected inflation readings, investors sharply increased bets that the U.S. Federal Reserve could return to raising interest rates before the end of the year, potentially creating an early challenge for incoming Fed Chair Kevin Warsh, Reuters reported.
According to CME’s FedWatch tool, markets are now pricing in around a 60% probability that the Fed’s benchmark rate will be 25 basis points higher by the January Federal Open Market Committee meeting, while the odds of a rate increase as early as December are close to even, Reuters said in a report.
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